Updated: Introduction of the Job Retention Bonus and CJRS

23 Jul 2020

Updated information on the introduction of the Job Retention Bonus for employers in the UK and CJRS

The UK Government has announced the introduction of the Job Retention Bonus. Employers will be eligible to receive a £1000 one-off payment bonus for every furloughed employee under the Coronavirus Job Retention Scheme (CJRS) who they continuously employ until 31 January 2021. The bonus will encourage employers to retain employees. Further information about the bonus scheme will be available on 31 July 2020 followed by full guidance published in autumn.

Key points of the Job Retention Bonus:

  • Employees need to earn an average minimum of £520 per month for November 2020, December 2020 and January 2020
  • Employees need to have been furloughed by their employees and claimed for under the CJRS
  • Employers are required to have continuously employed the employees until 31 January 2021
  • Employers can claim the bonus from February 2021

 

CJRS update – Key points for members

The table below shows key dates on the CJRS.

 

Key dates Details
Claim by 31 July 2020 Employees furloughed through the CJRS on or before 30 June 2020

To be eligible to claim for future months, ensure a claim is made on or before 31 July 2020

Claims ending on or before 31 July Online examples and a calculator are available on the GOV.UK website for employers to help work out what they can claim
From 1 August 2020

 

CJRS grants can no longer be used to cover National Insurance (NI) and pension contributions for furloughed employees – August claims can be submitted in advance, from 20 July 2020
From 1 September 2020 Employers will start contributing to furloughed employees’ wages – furloughed employees will still be eligible to receive at least 80 per cent of their usual wages; the difference is made up by employers

o   In September 2020, CJRS grants will be for 70 per cent of usual wages

o   In October 2020, CJRS grants will be for 60 percent of usual wages

 

 

References and further reading:

  • HM Revenue & Customs COVID-19 update 20 July 2020:

https://content.govdelivery.com/accounts/UKHMRCED/bulletins/2967a9b

 

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